Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 25, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | SOLITARIO EXPLORATION & ROYALTY CORP. | |
Entity Central Index Key | 917,225 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 38,685,189 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 91 | $ 119 |
Short-term investments | 14,989 | 15,250 |
Investments in marketable equity securities, at fair value | 1,685 | 1,339 |
Prepaid expenses and other | 72 | 89 |
Total current assets | 16,837 | 16,797 |
Mineral properties | 46 | 46 |
Other assets | 609 | 771 |
Total assets | 17,492 | 17,614 |
Current liabilities: | ||
Accounts payable | 113 | 124 |
Other | 3 | 2 |
Total current liabilities | 116 | 126 |
Shareholders’ equity: | ||
Preferred stock, $0.01 par value, authorized 10,000,000 shares (none issued and outstanding at March 31, 2017 and December 31, 2016) | ||
Common stock, $0.01 par value, authorized 100,000,000 shares (38,685,189 and 38,693,589 shares, respectively, issued and outstanding at March 31, 2017 and December 31, 2016) | 387 | 387 |
Additional paid-in capital | 55,784 | 55,790 |
Accumulated deficit | (39,414) | (39,401) |
Accumulated other comprehensive income | 619 | 712 |
Total shareholders’ equity | 17,376 | 17,488 |
Total liabilities and shareholders’ equity | $ 17,492 | $ 17,614 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Preferred stock | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 38,685,189 | 38,693,589 |
Common stock, shares outstanding | 38,685,189 | 38,693,589 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Costs, expenses and other: | ||
Exploration expense | $ 151 | $ 122 |
Depreciation and amortization | 1 | 1 |
General and administrative | 300 | 442 |
Total costs, expenses and other | 452 | 565 |
Other income | ||
Interest income (net) | 46 | 12 |
Gain on sale of marketable equity securities | 221 | |
Gain (loss) on derivative instruments | 172 | (1) |
Gain on warrant liability | 3 | |
Total other income | 439 | 14 |
Loss before income tax | (13) | (551) |
Income tax (expense) benefit | 62 | |
Net loss | $ (13) | $ (489) |
Loss per common share: Basic and diluted | $ 0 | $ (0.01) |
Weighted average shares outstanding: | ||
Basic and diluted | 38,692 | 39,121 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Consolidated Statements Of Comprehensive Income Loss | ||
Net loss, before other comprehensive (loss) income | $ (13) | $ (489) |
Other comprehensive (loss) income : | ||
Unrealized (loss) income on marketable equity securities, net of deferred taxes | (93) | 107 |
Comprehensive loss | $ (106) | $ (382) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities: | ||
Net loss | $ (13) | $ (489) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Unrealized (gain) loss on derivative instruments | (172) | 1 |
Depreciation and amortization | 1 | 1 |
Deferred income tax expense (benefit) | (62) | |
Gain on sale of marketable equity securities | (221) | |
Accrued interest income | (8) | |
Gain on warrant liability | (3) | |
Employee stock option expense | 2 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 32 | 18 |
Accounts payable and other current liabilities | (12) | (92) |
Net cash used in operating activities | (385) | (632) |
Investing activities: | ||
Sale (purchase) of short-term investments, net | 246 | (16,007) |
Proceeds from the sale of marketable equity securities | 259 | |
Purchase of marketable equity securities | (167) | |
Sale of derivative instruments | 25 | 40 |
Net cash provided by (used in) investing activities | 363 | (15,967) |
Financing activities: | ||
Purchase of common stock for cancellation | (6) | (83) |
Net cash used in financing activities | (6) | (83) |
Net decrease in cash and cash equivalents | (28) | (16,682) |
Cash and cash equivalents, beginning of period | 119 | 17,718 |
Cash and cash equivalents, end of period | $ 91 | $ 1,036 |
Business and Significant Accoun
Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Business and Significant Accounting Policies | 1. Business and Significant Accounting Policies Business and company formation Solitario Exploration & Royalty Corp. (“Solitario” or the “Company”) is an exploration stage company under Industry Guide 7, as issued by the United States Securities and Exchange Commission (“SEC”). Solitario was incorporated in the state of Colorado on November 15, 1984 as a wholly-owned subsidiary of Crown Resources Corporation. In July 1994, Solitario became a publicly traded company on the Toronto Stock Exchange (the "TSX") through its initial public offering. Solitario has been actively involved in mineral exploration since 1993. Solitario’s primary business is to acquire exploration mineral properties or royalties and/or discover economic deposits on its mineral properties and advance these deposits, either on its own or through joint ventures, up to the development stage. At that point, or sometime prior to that point, Solitario would likely attempt to sell its mineral properties, pursue their development either on its own, or through a joint venture with a partner that has expertise in mining operations, or create a royalty with a third party that continues to advance the property. Solitario has never developed a mineral property. In addition to focusing on its mineral exploration properties and the evaluation of mineral properties for acquisition or purchase of royalty interests, Solitario also evaluates potential strategic corporate transactions for the acquisition of new precious and base metal properties and assets with exploration potential or business combinations that we determine favorable to Solitario. Solitario has recorded revenue in the past from the sale of mineral properties, including the sale of its interest in Mount Hamilton LLC (“MH-LLC”), the owner of the Mt. Hamilton project during 2015 (the “Transaction”), and joint venture property payments and the sale of a royalty on its former Mt. Hamilton property. Revenues from the sale or joint venture of properties, although significant when they occur, have not been a consistent annual source of revenue and would only occur in the future, if at all, on an infrequent basis. The accompanying interim condensed consolidated financial statements of Solitario for the three months ended March 31, 2017 are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America. They do not include all disclosures required by generally accepted accounting principles for annual financial statements, but in the opinion of management, include all adjustments, consisting only of normal recurring items, necessary for a fair presentation. Interim results are not necessarily indicative of results, which may be achieved in the future or for the full year ending December 31, 2017. These financial statements should be read in conjunction with the financial statements and notes thereto which are included in Solitario’s Annual Report on Form 10-K for the year ended December 31, 2016. The accounting policies set forth in those annual financial statements are the same as the accounting policies utilized in the preparation of these financial statements, except as modified for appropriate interim financial statement presentation. Financial reporting The consolidated financial statements include the accounts of Solitario and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("generally accepted accounting principles"), and are expressed in U.S, dollars. Revenue recognition Solitario records delay rental payments as revenue in the period received. Any payments received for the sale of property interests are recorded as a reduction of the related property's capitalized cost. Proceeds which exceed the capitalized cost of the property without reserves are recognized as revenue. Payments received on the sale of properties with reserves are recognized as revenue to the extent the proceeds exceed the proportionate basis in the assets sold. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the more significant estimates included in the preparation of Solitario's financial statements pertain to: (i) Solitario’s carrying value of short-term investments; (ii) the recoverability of mineral properties related to its mineral exploration properties and their future exploration potential; (iii) the fair value of stock option grants to employees; (iv) the ability of Solitario to realize its deferred tax assets; (v) Solitario's investment in marketable equity securities; and (vi) the fair value of the Vendetta Mining Corp. (“Vendetta”) warrants Solitario owns. In performing its activities, Solitario has incurred certain costs for mineral properties. The recovery of these costs is ultimately dependent upon the sale of mineral property interests or the development of economically recoverable ore reserves and the ability of Solitario to obtain the necessary permits and financing to successfully place the properties into production, and upon future profitable operations, none of which is assured. Cash equivalents Cash equivalents include investments in highly liquid money-market securities with original maturities of three months or less when purchased. As of March 31, 2017, a portion of Solitario’s cash and cash equivalents are held in brokerage accounts and foreign banks, which are not covered under the Federal Deposit Insurance Corporation (“FDIC”) rules for the United States. At March 31, 2017, Solitario holds short-term investments in United States Treasury securities (“USTS”) of $10,490,000. Short-term investments As of March 31, 2017, Solitario has $10,490,000 of its current assets in USTS with maturities of 30 days to 16 months. The USTS are recorded at their fair value, based upon quoted market prices. As of March 31, 2017, we have $4,499,000 in separate bank certificates of deposit (“CDs”) each with a maximum value of $250,000, and each of which are covered by FDIC insurance to the full face value of the CDs. At March 31, 2017, the CDs have maturities of between 30 days and 15 months. Solitario’s short-term investments are recorded at their fair value, based upon quoted market prices. The short-term investments are highly liquid and may be sold in their entirety at any time at their quoted market price and are classified as a current asset. Mineral properties Solitario expenses all exploration costs incurred on its mineral properties prior to the establishment of proven and probable reserves through the completion of a feasibility study. Initial acquisition costs of Solitario’s mineral properties are capitalized. Solitario capitalizes all of its development expenditures on its projects, subsequent to the completion of a feasibility study. Solitario regularly performs evaluations of its investment in mineral properties to assess the recoverability and/or the residual value of its investments in these assets. All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable, utilizing established guidelines based upon undiscounted future net cash flows from the asset or upon the determination that certain exploration properties do not have sufficient potential for economic mineralization. Derivative instruments Solitario accounts for its derivative instruments in accordance with ASC 815, "Accounting for Derivative Instruments and Hedging Activities" (“ASC 815”). Solitario acquired its investment in Vendetta Mining Corp. units, including the Vendetta Warrants during 2016. Solitario has classified the Vendetta Warrants as derivative instruments under ASC 815 and recorded the Vendetta Warrants at their fair value as other assets on the consolidated balance sheet. Changes in fair value of the Vendetta Warrants are recognized in the statement of operations in the period of change as gain or loss on derivative instruments. Solitario has entered into covered calls from time to time on its investment in Kinross Gold Corporation (“Kinross”) marketable equity securities. Solitario has not designated its covered calls as hedging instruments and any changes in the fair value of the covered calls and its Vendetta Warrants are recognized in the statement of operations in the period of the change as gain or loss on derivative instruments. Fair value FASB ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”) establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. For certain of Solitario's financial instruments, including cash and cash equivalents and accounts payable, the carrying amounts approximate fair value due to their short-term maturities. Solitario's short-term investments in USTS and CDs, its marketable equity securities and any covered call options against those marketable equity securities are carried at their estimated fair value based on quoted market prices. Solitario’s investment in the Vendetta Warrants is carried at fair value as determined by a Black-Scholes model. Marketable equity securities Solitario's investments in marketable equity securities are classified as available-for-sale and are carried at fair value, which is based upon quoted prices of the securities owned. Solitario records investments in marketable equity securities as available-for-sale for investments in publicly traded marketable equity securities for which it does not exercise significant control and where Solitario has no representation on the board of directors of those companies and exercises no control over the management of those companies. The cost of marketable equity securities sold is determined by the specific identification method. Changes in fair value are recorded in accumulated other comprehensive income within shareholders' equity, unless a decline in fair value is considered other than temporary, in which case the decline is recognized as a loss in the consolidated statements of operations. Foreign exchange The United States dollar is the functional currency for all of Solitario's foreign subsidiaries. Although Solitario's South American exploration activities during 2017 and 2016 have been conducted primarily in Peru, a portion of the payments under the land, leasehold and exploration agreements of Solitario are denominated in United States dollars. Realized foreign currency gains and losses are included in the results of operations in the period in which they occur. Income taxes Solitario accounts for income taxes in accordance with ASC 740, “Accounting for Income Taxes” (“ASC 740”). Under ASC 740, income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses and tax credits that are available to offset future taxable income and income taxes, respectively. A valuation allowance is provided if it is more likely than not that some portion or all of the deferred tax assets will not be realized. Accounting for uncertainty in income taxes ASC 740 clarifies the accounting for uncertainty in income taxes recognized in a company's financial statements. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 provides that a company's tax position will be considered settled if the taxing authority has completed its examination, the company does not plan to appeal, and it is remote that the taxing authority would reexamine the tax position in the future. These provisions of ASC 740 had no effect on Solitario's financial position or results of operations. Earnings per share The calculation of basic and diluted earnings (loss) per share is based on the weighted average number of shares of common stock outstanding during the three months ended March 31, 2017 and 2016. Potentially dilutive shares related to outstanding common stock options of 40,000 for the three months ended March 31, 2016 were excluded from the calculation of diluted earnings (loss) per share because the effects were anti-dilutive. There were no similar potentially dilutive securities outstanding during the three months ended March 31, 2017. Employee stock compensation and incentive plans Solitario classifies all of its stock options as equity options in accordance with the provisions of ASC 718, “Compensation – Stock Compensation.” Recent accounting pronouncements In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU No. 2016-02”), which will require lessees to recognize a right-of-use asset and a lease liability for all leases that are not short-term in nature. For a lessor, the accounting applied is also largely unchanged from previous guidance. The new rules will be effective for Solitario in the first quarter of 2019. Solitario does not anticipate early adoption. Solitario does not expect the adoption of ASU No. 2016-02 to materially change its current accounting methods and therefore it does not expect the adoption to have a material impact on its consolidated financial position or results of operations. In January 2016 the FASB issued ASU No 2016-01, Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825) (“ASU No. 2016-01”) . |
Mineral Properties
Mineral Properties | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Mineral Properties | 2. Mineral Property The following table details Solitario’s investment in Mineral Property: (in thousands) March 31, December 31, 2017 2016 Exploration La Promesa (Peru) $ 6 $ 6 Montana Royalty property (US) 40 40 Total exploration mineral property $46 $46 All exploration costs on our other exploration properties, none of which have proven and probable reserves, including any additional costs incurred for subsequent lease payments or exploration activities related to our projects are expensed as incurred. Discontinued projects Solitario dropped its royalty interests in the Aconchi and Norcan exploration properties in Mexico during the three months ended March 31, 2017. There was no capitalized mineral property interest in either of the royalties dropped and Solitario did not record any mineral property write-downs during the three months ended March 31, 2017 or 2016. Exploration expense The following items comprised exploration expense: (in thousands) Three months ended 2017 2016 Geologic and field expenses $22 $76 Administrative 129 46 Total exploration costs $ 151 $ 122 |
Marketable Equity Securities
Marketable Equity Securities | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Marketable Equity Securities | 3. Marketable Equity Securities Solitario's investments in marketable equity securities are classified as available-for-sale and are carried at fair value, which is based upon quoted prices of the securities owned. The cost of marketable equity securities sold is determined by the specific identification method. Changes in market value are recorded in accumulated other comprehensive income or loss within shareholders' equity, unless a decline in market value is considered other than temporary, in which case the decline is recognized as a loss in the consolidated statement of operations. On May 2, 2016 Solitario purchased 7,240,000 units of Vendetta for aggregate consideration of $289,000. Each unit included one common share of Vendetta and one purchase warrant which allow the holder to purchase one share of Vendetta common stock at a price of Cdn$0.10 per share for a period of two years (the “Vendetta Warrants”). The total purchase price of the units of $289,000 was allocated between the Vendetta common shares and the Vendetta Warrants based upon total fair values on the date of purchase. The Vendetta common shares were allocated a purchase cost of $186,000 and the Vendetta Warrants were allocated a purchase cost of $103,000. As of March 31, 2017, the common shares of Vendetta are carried at their fair value based upon the quoted market price of Vendetta, a publicly traded company on the TSX Venture Exchange, and included in marketable equity securities. The Vendetta Warrants are carried at their fair value, based upon a Black-Scholes valuation model. During the three months ended March 31, 2017, Solitario sold 1,480,000 common shares of Vendetta for proceeds of $259,000, and recorded a gain on the sale of marketable equity securities of $221,000. In addition, during the three months ended March 31, 2017 Solitario exercised 2,240,000 of its Vendetta Warrants and received 2,240,000 Vendetta common shares, by paying $167,000 (Cdn$224,000) to Vendetta. The cost of the common shares received from the exercise of the Vendetta Warrants was recorded based upon the total of the (i) exercise price of the Vendetta Warrants exercised, $167,000, and (ii) the fair value of the Vendetta Warrants on the date of exercise, which equaled their intrinsic value, $309,000, for a total value of $476,000. As of March 31, 2017, Solitario owns 8,000,000 common shares of Vendetta, which are carried at their fair value based upon quoted market prices, with any unrealized gain or loss included in other comprehensive income. The following tables summarize Solitario’s marketable equity securities and accumulated other comprehensive income related to its marketable equity securities: (in thousands) March 31, 2017 December 31, 2016 Marketable equity securities at fair value $1,685 $1,339 Cost 713 274 Accumulated other comprehensive (loss) income for 972 1,065 Deferred taxes on accumulated other comprehensive (353) (353) Accumulated other comprehensive income $619 $ 712 The following table represents changes in marketable equity securities. (in thousands) Three months ended 2017 2016 Gross cash proceeds from sales $ 259 $ - Cost 38 - Gross gain (loss) on sale included in earnings during the period 221 - Reclassification adjustment to unrealized gain in other (221) - Gross unrealized holding gain arising during the period 128 $169 Deferred taxes on unrealized holding gains included in other comprehensive (income) loss - (62) Net unrealized holding gain 128 107 Other comprehensive (loss) income from marketable equity $(93) $107 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 4. Other Assets The following items comprised other assets: (in thousands) March 31, December 31, 2017 2016 Furniture and Fixtures, net of accumulated depreciation $ 31 $ 32 Exploration bonds and other assets 4 4 Vendetta Warrants 574 735 Total other assets $ 609 $771 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 5. Derivative Instruments Vendetta Warrants During the three months ended March 31, 2017, Solitario exercised 2,240,000 of its Vendetta Warrants and received 2,240,000 Vendetta common shares, by paying $167,000 (Cdn$224,000) to Vendetta. As a result as of March 31, 2017, Solitario owns 5,000,000 Vendetta Warrants, which are carried at fair value, based upon a Black-Scholes model. During the three months ended March 31, 2017, Solitario recorded a gain on derivative instruments of $148,000, related to the Vendetta Warrants; see Note 6, “Derivative Instruments,” below. RMB Warrants The warrants originally issued by Solitario in 2012 to RMB Australia Holdings Limited (the “RMB Warrants”) entitled the holder to purchase a total of 1,624,748 shares of Solitario common stock. The RMB Warrants had an exercise price of $1.54 per share and expired on August 21, 2016. Solitario recorded a gain on the RMB Warrants of $3,000 during the three months ended March 31, 2016. Covered Call Options From time to time Solitario has sold covered call options against its holdings of Kinross. The business purpose of selling covered calls is to provide additional liquidity on a limited portion of shares of Kinross that Solitario may sell in the near term, which is generally defined as less than one year. Solitario has not designated its covered calls as hedging instruments and records gains or loss on the covered call in the period of the change. Solitario recorded the following gain on derivative instruments: (in thousands) Three months ended March 31, 2017 2016 Gain (loss) on Kinross calls $ 24 $ (1) Gain on Vendetta Warrants 148 - $172 $ (1) The following table provides the location and amount of the fair values of Solitario's derivative instruments presented in the consolidated balance sheets as of March 31, 2017 and December 31, 2016: Derivatives March 31, December 31, (in thousands) Balance Sheet Location 2017 2016 Vendetta warrants Other assets $574 $735 Kinross calls Other current liabilities $ 3 $ 2 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 6. Fair Value For certain of Solitario’s financial instruments, including cash and cash equivalents and payables, the carrying amounts approximate fair value due to their short term maturities. Solitario’s short-term investments in CD’s and USTS, Kinross calls and marketable equity securities are carried at their estimated fair value primarily based on quoted market prices. The Vendetta Warrants are carried at their estimated fair value based on a Black-Scholes option pricing model. Solitario accounts for its financial instruments under ASC 820. ASC 820 establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows: · Level 1 · Level 2 · Level 3 The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. During the three months ended March 31, 2017 there were no reclassifications in financial assets or liabilities between Level 1, 2 or 3 categories. The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of March 31, 2017: (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities $ 1,685 $ - $ $ 1,685 United States Treasury securities 10,490 - - 10,490 Bank Certificates of Deposit 4,499 - - 4,499 Vendetta Warrants 574 574 Liabilities Kinross calls 3 3 The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of December 31, 2016: (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities $1,339 $ - $ - $1,339 United States Treasury securities 7,751 - - 7,751 Bank Certificates of Deposit 7,499 - - 7,499 Vendetta Warrants 735 735 Liabilities Kinross calls 2 - - 2 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Solitario accounts for income taxes in accordance with ASC 740. Under ASC 740, income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses and tax credits that are available to offset future taxable income and income taxes, respectively. A valuation allowance is provided if it is more likely than not that some portion or all of the deferred tax assets will not be realized. At March 31, 2017 and December 31, 2016, Solitario has recorded no net deferred tax assets. A valuation allowance, which fully offsets the net deferred tax assets, has been recorded because it is more likely than not that the Company will not realize some portion or all of its deferred tax assets. The Company continually assesses both positive and negative evidence to determine whether it is more likely than not that the deferred tax assets can be realized prior to their expiration. During the three months ended March 31, 2017, Solitario recorded no deferred tax expense. During the three months ended March 31, 2016, Solitario recorded a $62,000 deferred tax benefit in the statement of operations and recorded a deferred tax expense of $62,000 to other comprehensive income related to the net change in unrealized holding gains on marketable equity securities. |
Employee Stock Compensation Pla
Employee Stock Compensation Plans | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Stock Compensation Plans | 8. Employee Stock Compensation Plans Solitario had no outstanding options or equity awards at March 31, 2017 or December 31, 2016. Solitario had outstanding options exercisable to acquire 40,000 shares during the three months ended March 31, 2016, which had on the date of grant, a five year term, and vested 25% on date of grant and 25% on each of the next three anniversary dates. Solitario recognized stock option compensation expense on the date of grant for 25% of the grant date fair value, and subsequently, based upon a straight line amortization of the unvested grant date fair value of such options. During the three months ended March 31, 2016, Solitario recorded $2,000 of stock option expense for the amortization of grant date fair value with a credit to additional paid-in-capital. The 2006 Plan On June 27, 2006, Solitario’s shareholders approved the 2006 Stock Option Incentive Plan (the “2006 Plan”). On June 27, 2016, the 2006 Plan terminated and no additional options may be granted pursuant to the 2006 Plan. There were no new options granted during the three months ended March 31, 2017 and 2016 under the 2006 Plan. No options were exercised during the three months ended March 31, 2017 and 2016 under the 2006 Plan. The 2013 Plan On June 18, 2013, Solitario’s shareholders approved the 2013 Solitario Exploration & Royalty Corp. Omnibus Stock and Incentive Plan (the “2013 Plan”). Under the terms of the 2013 Plan, the Board of Directors, or a committee appointed by the Board of Directors, may grant awards for up to 1,750,000 shares to directors, officers, employees and consultants. Such awards may take the form of stock options, stock appreciation rights, restricted stock, and restricted stock units. There were no stock grants or awards or exercises of options or awards under the 2013 Plan during the three months ended March 31, 2017 and 2016. |
Shareholders' Equity and Accumu
Shareholders' Equity and Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity and Accumulated Other Comprehensive Income | 9. Shareholders’ Equity and Accumulated Other Comprehensive Income (in thousands, except Accumulated Share amounts) Common Common Additional Other Total Stock Stock Paid-in Accumulated Comprehensive Shareholders’ Shares Amount Capital Deficit Income Equity Balance at December 31, 2016 38,693,589 $387 $55,790 $(39,401) $712 $17,488 Purchase of shares for cancellation (8,400) - (6) - - (6) Net loss - - - (13) - (13) Net unrealized loss on marketable equity securities - - - - (93) (93) Balance at March 31, 2017 38,685,189 $387 $55,784 $(39,414) $619 $17,376 (in thousands, except Accumulated Share amounts) Common Common Additional Other Total Stock Stock Paid-in Accumulated Comprehensive Shareholders’ Shares Amount Capital Deficit Income Equity Balance at December 31, 2015 39,169,189 $392 $55,063 $(37,691) $111 $17,875 Stock option expense - - 2 - - 2 Purchase of shares for cancellation (174,000) (2) (81) - - (83) Net loss - - - (489) - (489) Net unrealized gain on marketable equity securities - - - - 107 107 Balance at March 31, 2016 38,995,189 $390 $54,984 $(38,180) $218 $17,412 Share Repurchase Program On October 28, 2015, Solitario’s Board of Directors approved a share repurchase program that initially authorized Solitario to purchase up to two million shares of its outstanding common stock through December 31, 2016. During 2016, Solitario’s Board of Directors extended the expiration date of the share repurchase program through December 31, 2017. During the three months ended March 31, 2017 and 2016, Solitario purchased 8,400 and 174,000 shares of Solitario common stock, respectively, for an aggregate purchase price of $6,000 and $83,000, respectively. As of March 31, 2017, Solitario has purchased a total of 629,000 shares for an aggregate purchase price of $321,000 under the share repurchase program since its inception. |
Business and Significant Acco16
Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
1. Business and Significant Accounting Policies | 1. Business and Significant Accounting Policies Business and company formation Solitario Exploration & Royalty Corp. (“Solitario” or the “Company”) is an exploration stage company under Industry Guide 7, as issued by the United States Securities and Exchange Commission (“SEC”). Solitario was incorporated in the state of Colorado on November 15, 1984 as a wholly-owned subsidiary of Crown Resources Corporation. In July 1994, Solitario became a publicly traded company on the Toronto Stock Exchange (the "TSX") through its initial public offering. Solitario has been actively involved in mineral exploration since 1993. Solitario’s primary business is to acquire exploration mineral properties or royalties and/or discover economic deposits on its mineral properties and advance these deposits, either on its own or through joint ventures, up to the development stage. At that point, or sometime prior to that point, Solitario would likely attempt to sell its mineral properties, pursue their development either on its own, or through a joint venture with a partner that has expertise in mining operations, or create a royalty with a third party that continues to advance the property. Solitario has never developed a mineral property. In addition to focusing on its mineral exploration properties and the evaluation of mineral properties for acquisition or purchase of royalty interests, Solitario also evaluates potential strategic corporate transactions for the acquisition of new precious and base metal properties and assets with exploration potential or business combinations that we determine favorable to Solitario. Solitario has recorded revenue in the past from the sale of mineral properties, including the sale of its interest in Mount Hamilton LLC (“MH-LLC”), the owner of the Mt. Hamilton project during 2015 (the “Transaction”), and joint venture property payments and the sale of a royalty on its former Mt. Hamilton property. Revenues from the sale or joint venture of properties, although significant when they occur, have not been a consistent annual source of revenue and would only occur in the future, if at all, on an infrequent basis. The accompanying interim condensed consolidated financial statements of Solitario for the three months ended March 31, 2017 are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America. They do not include all disclosures required by generally accepted accounting principles for annual financial statements, but in the opinion of management, include all adjustments, consisting only of normal recurring items, necessary for a fair presentation. Interim results are not necessarily indicative of results, which may be achieved in the future or for the full year ending December 31, 2017. These financial statements should be read in conjunction with the financial statements and notes thereto which are included in Solitario’s Annual Report on Form 10-K for the year ended December 31, 2016. The accounting policies set forth in those annual financial statements are the same as the accounting policies utilized in the preparation of these financial statements, except as modified for appropriate interim financial statement presentation. Financial reporting The consolidated financial statements include the accounts of Solitario and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("generally accepted accounting principles"), and are expressed in U.S, dollars. Revenue recognition Solitario records delay rental payments as revenue in the period received. Any payments received for the sale of property interests are recorded as a reduction of the related property's capitalized cost. Proceeds which exceed the capitalized cost of the property without reserves are recognized as revenue. Payments received on the sale of properties with reserves are recognized as revenue to the extent the proceeds exceed the proportionate basis in the assets sold. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the more significant estimates included in the preparation of Solitario's financial statements pertain to: (i) Solitario’s carrying value of short-term investments; (ii) the recoverability of mineral properties related to its mineral exploration properties and their future exploration potential; (iii) the fair value of stock option grants to employees; (iv) the ability of Solitario to realize its deferred tax assets; (v) Solitario's investment in marketable equity securities; and (vi) the fair value of the Vendetta Mining Corp. (“Vendetta”) warrants Solitario owns. In performing its activities, Solitario has incurred certain costs for mineral properties. The recovery of these costs is ultimately dependent upon the sale of mineral property interests or the development of economically recoverable ore reserves and the ability of Solitario to obtain the necessary permits and financing to successfully place the properties into production, and upon future profitable operations, none of which is assured. Cash equivalents Cash equivalents include investments in highly liquid money-market securities with original maturities of three months or less when purchased. As of March 31, 2017, a portion of Solitario’s cash and cash equivalents are held in brokerage accounts and foreign banks, which are not covered under the Federal Deposit Insurance Corporation (“FDIC”) rules for the United States. At March 31, 2017, Solitario holds short-term investments in United States Treasury securities (“USTS”) of $10,490,000. Short-term investments As of March 31, 2017, Solitario has $10,490,000 of its current assets in USTS with maturities of 30 days to 16 months. The USTS are recorded at their fair value, based upon quoted market prices. As of March 31, 2017, we have $4,499,000 in separate bank certificates of deposit (“CDs”) each with a maximum value of $250,000, and each of which are covered by FDIC insurance to the full face value of the CDs. At March 31, 2017, the CDs have maturities of between 30 days and 15 months. Solitario’s short-term investments are recorded at their fair value, based upon quoted market prices. The short-term investments are highly liquid and may be sold in their entirety at any time at their quoted market price and are classified as a current asset. Mineral properties Solitario expenses all exploration costs incurred on its mineral properties prior to the establishment of proven and probable reserves through the completion of a feasibility study. Initial acquisition costs of Solitario’s mineral properties are capitalized. Solitario capitalizes all of its development expenditures on its projects, subsequent to the completion of a feasibility study. Solitario regularly performs evaluations of its investment in mineral properties to assess the recoverability and/or the residual value of its investments in these assets. All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable, utilizing established guidelines based upon undiscounted future net cash flows from the asset or upon the determination that certain exploration properties do not have sufficient potential for economic mineralization. Derivative instruments Solitario accounts for its derivative instruments in accordance with ASC 815, "Accounting for Derivative Instruments and Hedging Activities" (“ASC 815”). Solitario acquired its investment in Vendetta Mining Corp. units, including the Vendetta Warrants during 2016. Solitario has classified the Vendetta Warrants as derivative instruments under ASC 815 and recorded the Vendetta Warrants at their fair value as other assets on the consolidated balance sheet. Changes in fair value of the Vendetta Warrants are recognized in the statement of operations in the period of change as gain or loss on derivative instruments. Solitario has entered into covered calls from time to time on its investment in Kinross Gold Corporation (“Kinross”) marketable equity securities. Solitario has not designated its covered calls as hedging instruments and any changes in the fair value of the covered calls and its Vendetta Warrants are recognized in the statement of operations in the period of the change as gain or loss on derivative instruments. Fair value FASB ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”) establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. For certain of Solitario's financial instruments, including cash and cash equivalents and accounts payable, the carrying amounts approximate fair value due to their short-term maturities. Solitario's short-term investments in USTS and CDs, its marketable equity securities and any covered call options against those marketable equity securities are carried at their estimated fair value based on quoted market prices. Solitario’s investment in the Vendetta Warrants is carried at fair value as determined by a Black-Scholes model. Marketable equity securities Solitario's investments in marketable equity securities are classified as available-for-sale and are carried at fair value, which is based upon quoted prices of the securities owned. Solitario records investments in marketable equity securities as available-for-sale for investments in publicly traded marketable equity securities for which it does not exercise significant control and where Solitario has no representation on the board of directors of those companies and exercises no control over the management of those companies. The cost of marketable equity securities sold is determined by the specific identification method. Changes in fair value are recorded in accumulated other comprehensive income within shareholders' equity, unless a decline in fair value is considered other than temporary, in which case the decline is recognized as a loss in the consolidated statements of operations. Foreign exchange The United States dollar is the functional currency for all of Solitario's foreign subsidiaries. Although Solitario's South American exploration activities during 2017 and 2016 have been conducted primarily in Peru, a portion of the payments under the land, leasehold and exploration agreements of Solitario are denominated in United States dollars. Realized foreign currency gains and losses are included in the results of operations in the period in which they occur. Income taxes Solitario accounts for income taxes in accordance with ASC 740, “Accounting for Income Taxes” (“ASC 740”). Under ASC 740, income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses and tax credits that are available to offset future taxable income and income taxes, respectively. A valuation allowance is provided if it is more likely than not that some portion or all of the deferred tax assets will not be realized. Accounting for uncertainty in income taxes ASC 740 clarifies the accounting for uncertainty in income taxes recognized in a company's financial statements. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 provides that a company's tax position will be considered settled if the taxing authority has completed its examination, the company does not plan to appeal, and it is remote that the taxing authority would reexamine the tax position in the future. These provisions of ASC 740 had no effect on Solitario's financial position or results of operations. Earnings per share The calculation of basic and diluted earnings (loss) per share is based on the weighted average number of shares of common stock outstanding during the three months ended March 31, 2017 and 2016. Potentially dilutive shares related to outstanding common stock options of 40,000 for the three months ended March 31, 2016 were excluded from the calculation of diluted earnings (loss) per share because the effects were anti-dilutive. There were no similar potentially dilutive securities outstanding during the three months ended March 31, 2017. Employee stock compensation and incentive plans Solitario classifies all of its stock options as equity options in accordance with the provisions of ASC 718, “Compensation – Stock Compensation.” Recent accounting pronouncements In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU No. 2016-02”), which will require lessees to recognize a right-of-use asset and a lease liability for all leases that are not short-term in nature. For a lessor, the accounting applied is also largely unchanged from previous guidance. The new rules will be effective for Solitario in the first quarter of 2019. Solitario does not anticipate early adoption. Solitario does not expect the adoption of ASU No. 2016-02 to materially change its current accounting methods and therefore it does not expect the adoption to have a material impact on its consolidated financial position or results of operations. In January 2016 the FASB issued ASU No 2016-01, Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825) (“ASU No. 2016-01”) . |
Mineral Properties (Tables)
Mineral Properties (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Extractive Industries [Abstract] | |
Investment in Mineral Properties | (in thousands) March 31, December 31, 2017 2016 Exploration La Promesa (Peru) $ 6 $ 6 Montana Royalty property (US) 40 40 Total exploration mineral property $46 $46 |
Exploration Expense | (in thousands) Three months ended 2017 2016 Geologic and field expenses $22 $76 Administrative 129 46 Total exploration costs $ 151 $ 122 |
Marketable Equity Securities (T
Marketable Equity Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Marketable Equity Securities and Accumulated Other Comprehensive Income | (in thousands) March 31, 2017 December 31, 2016 Marketable equity securities at fair value $1,685 $1,339 Cost 713 274 Accumulated other comprehensive (loss) income for 972 1,065 Deferred taxes on accumulated other comprehensive (353) (353) Accumulated other comprehensive income $619 $ 712 |
Change in Marketable Equity Securities | (in thousands) Three months ended 2017 2016 Gross cash proceeds from sales $ 259 $ - Cost 38 - Gross gain (loss) on sale included in earnings during the period 221 - Reclassification adjustment to unrealized gain in other (221) - Gross unrealized holding gain arising during the period 128 $169 Deferred taxes on unrealized holding gains included in other comprehensive (income) loss - (62) Net unrealized holding gain 128 107 Other comprehensive (loss) income from marketable equity $(93) $107 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | (in thousands) March 31, December 31, 2017 2016 Furniture and Fixtures, net of accumulated depreciation $ 31 $ 32 Exploration bonds and other assets 4 4 Vendetta Warrants 574 735 Total other assets $ 609 $771 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain on Derivative Instruments | (in thousands) Three months ended March 31, 2017 2016 Gain (loss) on Kinross calls $ 24 $ (1) Gain on Vendetta Warrants 148 - $172 $ (1) |
Fair Value Derivative Instruments | Derivatives March 31, December 31, (in thousands) Balance Sheet Location 2017 2016 Vendetta warrants Other assets $574 $735 Kinross calls Other current liabilities $ 3 $ 2 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value | (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities $ 1,685 $ - $ $ 1,685 United States Treasury securities 10,490 - - 10,490 Bank Certificates of Deposit 4,499 - - 4,499 Vendetta Warrants 574 574 Liabilities Kinross calls 3 3 The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of December 31, 2016: (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities $1,339 $ - $ - $1,339 United States Treasury securities 7,751 - - 7,751 Bank Certificates of Deposit 7,499 - - 7,499 Vendetta Warrants 735 735 Liabilities Kinross calls 2 - - 2 |
Shareholders' Equity and Accu22
Shareholders' Equity and Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Shareholders Equity Dec 2016 to Mar 2017 | (in thousands, except Accumulated Share amounts) Common Common Additional Other Total Stock Stock Paid-in Accumulated Comprehensive Shareholders’ Shares Amount Capital Deficit Income Equity Balance at December 31, 2016 38,693,589 $387 $55,790 $(39,401) $712 $17,488 Purchase of shares for cancellation (8,400) - (6) - - (6) Net loss - - - (13) - (13) Net unrealized loss on marketable equity securities - - - - (93) (93) Balance at March 31, 2017 38,685,189 $387 $55,784 $(39,414) $619 $17,376 |
Shareholders Equity Dec 2015 to Mar 2016 | (in thousands, except Accumulated Share amounts) Common Common Additional Other Total Stock Stock Paid-in Accumulated Comprehensive Shareholders’ Shares Amount Capital Deficit Income Equity Balance at December 31, 2015 39,169,189 $392 $55,063 $(37,691) $111 $17,875 Stock option expense - - 2 - - 2 Purchase of shares for cancellation (174,000) (2) (81) - - (83) Net loss - - - (489) - (489) Net unrealized gain on marketable equity securities - - - - 107 107 Balance at March 31, 2016 38,995,189 $390 $54,984 $(38,180) $218 $17,412 |
Business and Significant Acco23
Business and Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2017 | |
Accounting Policies [Abstract] | ||
Short-term investments in US Treasuries | $ 10,490 | |
Bank Certificates of Deposit maximum value $250,000 | $ 4,499 | |
Outstanding common stock options potentially dilutive 30 mos | 40,000 |
Mineral Properties -Properties
Mineral Properties -Properties - Investment in Mineral Properties (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
La Promesa (Peru) | ||
Exploration | $ 6 | $ 6 |
Montana Royalty Property (US) | ||
Exploration | $ 40 | $ 40 |
Mineral Properties - Properties
Mineral Properties - Properties - Exploration Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Extractive Industries [Abstract] | ||
Geologic and field expenses | $ 22 | $ 76 |
Administrative | 129 | 46 |
Total exploration costs | $ 151 | $ 122 |
Marketable Equity Securities -
Marketable Equity Securities - Marketable Equity Securities and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Notes to Financial Statements | ||
Marketable equity securities at fair value | $ 1,685 | $ 1,339 |
Cost | 713 | 274 |
Accumulated other comprehensive (loss) income for unrealized holding gains | 972 | 1,065 |
Deferred taxes on accumulated other comprehensive income for unrealized holding gains | (353) | (353) |
Accumulated other comprehensive income | $ 619 | $ 712 |
Marketable Equity Securities 27
Marketable Equity Securities - Change in Marketable Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Notes to Financial Statements | ||
Gross cash proceeds from sales | $ 259 | |
Cost | 38 | |
Gross gain (loss) on sale included in earnings during the period | 221 | |
Reclassification adjustment to unrealized gain in other comprehensive income for net (gain) loss included in earnings | (221) | |
Gross unrealized holding gain arising during the period included in other comprehensive income (loss) | 128 | 169 |
Deferred taxes on unrealized holding gains included in other comprehensive (income) loss | $ (62) | |
Other comprehensive (loss) income from marketable equity securities | $ (93) |
Marketable Equity Securities (D
Marketable Equity Securities (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | May 02, 2016 | |
Notes to Financial Statements | ||
Purchase of Vendetta Units - shares | 7,240,000 | |
Aggregate consideration for shares of Vendetta; purchase cost of shares of $186,000; purchase cost of warrants $103,000 | $ 289,000 | |
Shares of Vendetta sold | 1,480,000 | |
Proceeds from sale of Vendetta Shares | $ 259 | |
Gain on sale of Vendetta Shares | $ 221 | |
Shares of Vendetta Warrants exercised and received | 2,240,000 | |
Payment to Vendetta for Warrants (Cdn$224,000) | $ 167 | |
Intrinsic value of Vendetta Warrants | 309 | |
Total value Vendetta Warrants exercised | $ 476 | |
Shares owned of Vendetta | 8,000,000 |
Other Assets - Other Assets (De
Other Assets - Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Furniture and Fixtures, net of accumulated depreciation | $ 31 | $ 32 |
Exploration bonds and other assets | 4 | 4 |
Vendetta Warrants | 574 | 735 |
Total other assets | $ 609 | $ 771 |
Derivative Instruments - Gain o
Derivative Instruments - Gain on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gain (loss) on Kinross calls | $ 24 | $ (1) |
Gain on 5,000,000 Vendetta Warrants | 148 | |
Gain on derivative instruments | $ 172 | $ (1) |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Vendetta warrants (other assets) | $ 574 | $ 735 |
Kinross calls (other current liabilities) | $ 3 | $ 2 |
Derivative Instruments (Details
Derivative Instruments (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Aug. 21, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Gain on Vendetta derivative instruments 2017 and gain on RMB warrants 2016 | $ 148 | $ 3 | |
Warrants issued to RMB at $1.54 per share expired | 1,624,748 |
Fair Value - Financial Assets a
Fair Value - Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Level 1 | ||
Assets | ||
Marketable equity securities | $ 1,685 | $ 1,339 |
United States Treasury securities | 10,490 | 7,751 |
Bank Certificates of Deposit | 4,499 | 7,499 |
Vendetta Warrants | ||
Liabilities | ||
Kinross calls | 3 | 2 |
Level 2 | ||
Assets | ||
Marketable equity securities | ||
United States Treasury securities | ||
Bank Certificates of Deposit | ||
Vendetta Warrants | 574 | 735 |
Liabilities | ||
Kinross calls | ||
Level 3 | ||
Assets | ||
Marketable equity securities | ||
Bank Certificates of Deposit | ||
Vendetta Warrants | ||
Liabilities | ||
Kinross calls |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Deferred tax benefit in statement of operations | $ 62,000 |
Deferred tax expense in other comprehensive income | $ 62,000 |
Employee Stock Compensation P35
Employee Stock Compensation Plans (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Jun. 18, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ||
Outstanding options exercisable | 40,000 | |
Stock option expense | $ 2 | |
Awards available for grant under 2013 Plan | 1,750,000 |
Shareholders Equity
Shareholders Equity - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Common Stock | ||
Beginning balance, value | $ 387 | $ 392 |
Beginning balance, shares | 38,693,589 | 39,169,189 |
Purchase of shares for cancellation, value | $ (2) | |
Purchase of shares for cancellation, shares | (8,400) | (174,000) |
Ending balance, value | $ 387 | $ 390 |
Ending balance, shares | 38,685,189 | 38,995,189 |
Additional Paid-In Capital | ||
Beginning balance, value | $ 55,790 | $ 55,063 |
Stock option expense | 2 | |
Purchase of shares for cancellation, value | (6) | (81) |
Ending balance, value | 55,784 | 54,984 |
Retained Earnings / Accumulated Deficit | ||
Beginning balance, value | (39,401) | (37,691) |
Net loss | (13) | (489) |
Ending balance, value | (39,414) | (38,180) |
Other Comprehensive Income / Loss | ||
Beginning balance, value | 712 | 111 |
Net unrealized gain (loss) on marketable equity securities | (93) | 107 |
Ending balance, value | 619 | 218 |
Beginning balance, value | 17,488 | 17,875 |
Stock option expense | 2 | |
Purchase of shares for cancellation, value | $ (6) | $ (83) |
Purchase of shares for cancellation, shares | 8,400 | 174,000 |
Net loss | $ (13) | $ (489) |
Net unrealized gain (loss) on marketable equity securities | (93) | 107 |
Ending balance, value | $ 17,376 | $ 17,412 |
Shareholders' Equity and Accu37
Shareholders' Equity and Accumulated Other Comprehensive Income (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Oct. 18, 2015 | |
Equity [Abstract] | |||
Shares authorized for repurchase 2,000,000 | 2,000,000 | ||
Shares purchased | 8,400 | 174,000 | |
Aggregate purchase price of shares purchased | $ 6 | $ 83 | |
Total shares repurchased since program's inception | 629,000 | ||
Aggregate purchase price of shares repurchased since program's inception | $ 321 |